WallStSmart

Southern Company (SO)vsWEC Energy Group Inc (WEC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Southern Company generates 198% more annual revenue ($30.18B vs $10.14B). WEC leads profitability with a 16.7% profit margin vs 15.4%. SO appears more attractively valued with a PEG of 2.07. SO earns a higher WallStSmart Score of 66/100 (B-).

SO

Strong Buy

66

out of 100

Grade: B-

Growth: 6.0Profit: 7.5Value: 4.0Quality: 3.0
Piotroski: 2/9Altman Z: 0.65

WEC

Buy

62

out of 100

Grade: C+

Growth: 5.3Profit: 7.0Value: 4.0Quality: 3.0
Piotroski: 3/9Altman Z: 0.73
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SOSignificantly Overvalued (-40.5%)

Margin of Safety

-40.5%

Fair Value

$62.06

Current Price

$87.17

$25.11 premium

UndervaluedFair: $62.06Overvalued
WECSignificantly Overvalued (-56.7%)

Margin of Safety

-56.7%

Fair Value

$72.21

Current Price

$105.33

$33.12 premium

UndervaluedFair: $72.21Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SO4 strengths · Avg: 8.3/10
Market CapQuality
$100.28B9/10

Large-cap with strong market position

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

Operating MarginProfitability
29.6%8/10

Strong operational efficiency at 29.6%

EPS GrowthGrowth
30.4%8/10

Earnings expanding 30.4% YoY

WEC2 strengths · Avg: 8.0/10
Price/BookValuation
2.5x8/10

Reasonable price relative to book value

Operating MarginProfitability
21.8%8/10

Strong operational efficiency at 21.8%

Areas to Watch

SO4 concerns · Avg: 3.5/10
PEG RatioValuation
2.074/10

Expensive relative to growth rate

Revenue GrowthGrowth
0.1%4/10

0.1% revenue growth

Debt/EquityHealth
1.953/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

WEC4 concerns · Avg: 3.5/10
PEG RatioValuation
2.084/10

Expensive relative to growth rate

Revenue GrowthGrowth
2.6%4/10

2.6% revenue growth

Debt/EquityHealth
1.633/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : SO

The strongest argument for SO centers on Market Cap, Price/Book, Operating Margin. Profitability is solid with margins at 15.4% and operating margin at 29.6%.

Bull Case : WEC

The strongest argument for WEC centers on Price/Book, Operating Margin. Profitability is solid with margins at 16.7% and operating margin at 21.8%.

Bear Case : SO

The primary concerns for SO are PEG Ratio, Revenue Growth, Debt/Equity. Debt-to-equity of 1.95 is elevated, increasing financial risk.

Bear Case : WEC

The primary concerns for WEC are PEG Ratio, Revenue Growth, Debt/Equity. Debt-to-equity of 1.63 is elevated, increasing financial risk.

Key Dynamics to Monitor

WEC carries more volatility with a beta of 0.46 — expect wider price swings.

WEC is growing revenue faster at 2.6% — sustainability is the question.

WEC generates stronger free cash flow (-270M), providing more financial flexibility.

Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.

Bottom Line

SO scores higher overall (66/100 vs 62/100), backed by strong 15.4% margins. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Southern Company

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

Southern Company is an American gas and electric utility holding company based in the southern United States. It is headquartered in Atlanta, Georgia, with executive offices also located in Birmingham, Alabama.

WEC Energy Group Inc

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

WEC Energy Group, based in Milwaukee, Wisconsin, provides electricity and natural gas to 4.4 million customers across four states.

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